M1 FINANCE Vs. ROBINHOOD: WHICH INVESTMENT & TRADING PLATFORM IS PERFECT FOR YOU?
Are you looking for ways to make passive income this year, or do you want to increase your overall earnings by diversifying your income stream? Then you'll be happy to know that there are a ton of things that you can do. From investing in the stock exchange market, ETFs, cryptocurrency, and high-value assets, millennials and Xennials are gradually breaking free from the typical 9-5 jobs to become financially free.
Learning to invest and grow money is a crucial money management skill that’s required for anyone looking to build long-term wealth. Fintech companies and trading companies have come up with innovative platforms to help beginners and expert traders invest, save and manage money as you they see fit.
In this article, we’ll be reviewing two of the top trading and investment platforms available today, M1 Finance and Robinhood. We’ll be looking at the pros and cons of using each platform, comparing them side-by-side to determine which investment platform is just right for you.
While these platforms might be similar in so many ways, they, however, possess features that are unique to their brands that set them apart from the rest.
If you’re looking to invest in stocks and crypto currencies but don’t know which to choose, then you’ve come to the right place for
help.
So strap on your seat belts and let the showdown begin.
M1 Finance
M1 Finance is a financial services company, a broker, that allows users to invest, borrow, and spend with one easy-to-use platform.
The company was founded on April 20, 2015, and allows users to trade stock, Exchange Trade Funds (ETFs), and other financial assets online free of commission.
The company was founded on April 20, 2015, and allows users to trade stock, Exchange Trade Funds (ETFs), and other financial assets online free of commission.
M1 Finance is a Robo-advisor that uses a sophisticated algorithm to provide financial advice while providing you with the ability to fully customize your trading plans to your liking.
As an M1 Finance user, you’ll have easy access to several prebuilt portfolios and other useful features that will help you make better investment choices that will take you many steps closer to achieving your financial goals.
What makes M1 Finance a game-changer is that it provides the ability for users to automate their entire portfolio. The user-friendly interface, free pre-built portfolios, fractional shares, and a minimum allowable balance of just $100 makes it a great platform for long-term investors.
M1 Finance’s founder, Brian Barnes built the platform to make investing more attractive to millennials. He made it a goal to provide a platform that offers convenience, automation, and low costs. If these sound like interesting features you’d love to experience first hand, then M1 finance is your best choice for an investment platform. It simplifies and automates the investing process so that you can spend your time concentrating on the bigger picture — building wealth.
What makes M1 Finance a game-changer is that it provides the ability for users to automate their entire portfolio. The user-friendly interface, free pre-built portfolios, fractional shares, and a minimum allowable balance of just $100 makes it a great platform for long-term investors.
M1 Finance’s founder, Brian Barnes built the platform to make investing more attractive to millennials. He made it a goal to provide a platform that offers convenience, automation, and low costs. If these sound like interesting features you’d love to experience first hand, then M1 finance is your best choice for an investment platform. It simplifies and automates the investing process so that you can spend your time concentrating on the bigger picture — building wealth.
Pros of M1 Finance.
- M1 Finance is designed for traders with a more passive trading style. It allows users to choose from more than 80 customized portfolios, or build a customized portfolio and automate their earnings.
- There are no trading fees, deposits, or withdrawal fees to and the company allows users to trade and manage their financial assets without any hidden fees or charges popping up out of the blue.
- With M1 Finance, you can trade fractional shares.
- Its easy-to-use interface makes it easier for beginners and newbies to understand the composition of their portfolio at a glance at the dashboard.
- M1 Finance offers considerably lower interest rates on margin borrowing.
- The platform offers other cool features, but the two most exciting are its tax minimization and smart rebalancing capabilities.
- M1 Finance is transparent about its services and how it generates its revenue. The company doesn’t charge anything for you to use its services.
- M1 Finance has a well-designed mobile app that’s rated 4.3 stars (out of 5) on Google Play, and 4.5 stars (out of 5) on the iOS App Store.
Cons of M1 Finance.
- M1 finance is designed to help long-term traders and does not come with features to support day trading or active traders.
- M1 Finance users are restricted to one trading window per day.
- Users can’t buy or sell options or crypto on the platform.
Our next investment and trading platform, a worthy challenger of the exciting M1 Finance is Robinhood.
Robinhood.
With a name that’s sure to take you back to the story of the legendary outlaw living in Sherwood Forest, this revolutionary platform is another brainchild of founders Vladimir Tenev and Baiju Bhatt, who had recently built high-frequency trading platforms for financial institutions in New York City.
Robinhood Markets, Inc., an American financial services company, introduced its mobile app in March 2015 that allows users to trade stocks and Exchange-Traded Funds commission-free. It is not a Robo-advisor and it is designed primarily for people looking to make trades.
Robinhood.
With a name that’s sure to take you back to the story of the legendary outlaw living in Sherwood Forest, this revolutionary platform is another brainchild of founders Vladimir Tenev and Baiju Bhatt, who had recently built high-frequency trading platforms for financial institutions in New York City.
Robinhood Markets, Inc., an American financial services company, introduced its mobile app in March 2015 that allows users to trade stocks and Exchange-Traded Funds commission-free. It is not a Robo-advisor and it is designed primarily for people looking to make trades.
The Robinhood platform allows users to trade financial assets including stocks, options, cryptocurrency, and Exchange Trade Funds. Unlike M1 Finance, Robinhood does not offer prebuilt portfolios and is primarily targeted towards people who are new to trading.
Although there are many big-name competitors in the market, Robinhood has been able to thrive by being one of the few brokers that support cryptocurrency trading.
The best part is that there’s no minimum account balance required. Yes, you can have as little as $0 in your account and your account will still be active. Things are looking pretty good for Robinhood now, right? Little wonder why the platform has garnered so much success since its 2015 launch. As of 2020, Robinhood had a total number of 13 million users and those numbers continue to grow exponentially.
Although there are many big-name competitors in the market, Robinhood has been able to thrive by being one of the few brokers that support cryptocurrency trading.
The best part is that there’s no minimum account balance required. Yes, you can have as little as $0 in your account and your account will still be active. Things are looking pretty good for Robinhood now, right? Little wonder why the platform has garnered so much success since its 2015 launch. As of 2020, Robinhood had a total number of 13 million users and those numbers continue to grow exponentially.
Pros of Robinhood.
- Robinhood is among the few trading platforms that allow its users access to trade cryptocurrency and options as well as the traditional stocks and ETFs.
- Because of its simplicity and lack of complex trading tools, it’s pretty easy for anyone to register and get started. Beginners and newbie investors are easily introduced to the world of trading with their easy-to-understand interface and a quick onboarding process.
- The best part is that there are no minimum balance requirements or any sort of restriction. You don’t need to kickstart your account with up $1,000 or $5,000, and the platform allows users to easily buy fractional shares.
- Robinhood has both web and mobile applications that support trading.
Cons of Robinhood.
- Because Robinhood is targeted towards newbie traders, it lacks enough of the sophistication and tools needed by investors seeking a more advanced trading platform.
- Robinhood does not provide support for retirement accounts.
- Since Robinhood is not a Robo-advisor, there are no pre-built portfolios. Hence, you’re required to make your own trades.